Employee Provident Fund Organization (EPFO) is considering a proposal to reduce provident fund contribution from 12 percent to 10 percent by both workers and employers. EPFO is claiming that the proposal is beneficial to workers as it will increase their take-home pay. It is hiding the real reason for the proposal which is to help the capitalists by reducing their contribution to workers’ provident fund.
The Labour Ministry actually asked the Employee Provident Fund Organization (EPFO) to consider the request of capitalists to reduce employer’s contribution to provident fund. EPFO felt that reducing only employer’s contribution would have appeared very blatantly pro-capitalist, so they came up with the proposal to reduce the contribution by both, workers as well as employers and justify it on the basis of increasing the take home pay.
For workers provident fund is a major, and for many the only, source of security on retirement. The proposal would mean the fund available to a worker on retirement would be lower by around 16%.
The proposal has been rightly opposed by all India trade unions like AITUC and INTUC and even by the BJP-affiliated BMS. Working class cannot be taken up by the false justification of improving their take–home pay and must expose the real reason of helping the capitalists. The anti-worker proposal has to be resolutely opposed and the pro-capitalist face of the government exposed.